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Tc
Mon, Jan-22-07, 17:16
http://www.timesofmalta.com/core/article.php?id=249766

Biotech dairy debate spills across US markets Carey
Gillam, Reuters

Five years ago, Missouri dairy farmer Leroy Shatto was
struggling to stay in business. Today, his herd has more than
doubled amid a surge in demand for his product. The
difference: a marketing campaign touting Shatto milk as free
of artificial hormones.

Osborn, Missouri-based Shatto milk comes plain or flavoured,
but all comes from cows free of the genetically engineered
hormone supplements that many conventional dairies give cows
to to boost their milk production.

"That is what the consumers want now," said Mr Shatto, who
runs a small family farm of 220 cows. "People are demanding
this stuff not to be in their milk. If I had 100 more cows
tomorrow, I still couldn't keep caught up with demand."

Corporate backers and consumer activists have been battling
for more than a decade over whether an artificial growth
hormone given to dairy cows, known as rbST or rBGH, is harmful
to human and animal health.

The debate has taken a marked turn over the last several
months as a growing number of dairy producers and food
industry players have begun demanding rbST-free milk, citing
heightened consumer demand and new niche marketing
opportunities.

"We're not making any moral judgements. It is about giving
consumers what they want, and there are some consumers who
simply do not want artificial growth hormones in their milk,"
said Marguerite Copel, spokesman for Dean Foods Co., the
nation's largest milk processor and distributor.

Milk marketed as free of artificial growth hormones is not
considered "organic" because it does not meet other criteria.
But it still commands a premium price of $1.50 or more per
half-gallon over conventional milk on grocery shelves.

Dean Foods has pushed producers in at least 15 US markets to
stop using the hormones, and similar moves are being evaluated
around the country, said Copel. H.P. Hood, another major US
milk company, has also announced a switch.

Last week, Starbucks Corp. said it was working with dairy
suppliers to shift to rBGH-free milk products in its 5,500
company-owned US coffeehouses.

"I don't think it is a trend that shows any signs of abating,"
said National Milk Producers Federation spokesman Chris Galen.

St Louis-based Monsanto Co., a leading developer of biotech
crops, is the sole producer of the artificial hormone
supplement, which it brands as Posilac. The supplement is
produced through recombinant DNA technology, and referred to
as rBGH for recombinant bovine growth hormone, or rbST for
recombinant bovine somatotropin.

The company began selling FDA-approved Posilac in 1994 as a
tool for boosting milk production in cows and says the milk
cannot be distinguished from milk from cows that don't
receive the supplement. Suppliers who label milk as
indicating there is a difference are misleading consumers,
according to Monsanto.

"Farmers lose a safe, effective technology that helps them
make a living and consumers pay more for the same milk," said
Monsanto spokesman Andrew Burchett.

Mr Burchett said the company has been able to add new Posilac
customers in recent months. But in a January 9 filing with the
US Securities and Exchange Commission, Monsanto said future
sales could be limited in part because of processor requests
for rbST-free milk.

The changes come as critics charge that scientific studies
show excess levels of IGF-1 in rBGH milk can pose risks of
breast, colon and prostate cancers. They also say the hormone
supplements cause a range of health problems for dairy cows.
Some countries, including Canada, have refused to approve the
supplement.

"There are definitely concerns about the impact on human
health but people have multiple levels of concern," said Patty
Lovera, assistant director of Food and Water Watch, which is
trying to eradicate use of Posilac.

Monsanto disputes evidence of health problems. "There is
no scientific evidence that IGF-1 causes cancer," said
Mr Burchett.

Back in Missouri, Leroy Shatto said he is less concerned with
the make-up of the milk than in making customers happy.

"People are just loving this stuff," said Mr Shatto. "Business
has been unbelievable since we started doing this."

***

TC